Research indicates that graduates in the U.K. Are now receiving 30% less compensation after completing their studies compared to 2007, with findings suggesting the salary advantage for Generation Z is not as substantial as it was for millennials.

For over ten years, the financial worth of a university qualification has been steadily diminishing. Recent studies indicate that the salary advantage for graduates compared to minimum wage earnings has been reduced by fifty percent since 2007.

After accounting for inflation, the typical pay for employed graduates is currently 30% less than it was fifteen years prior, based on official figures examined by Bloomberg. Consequently, current Gen Z graduates are making considerably less than millennials did when they were at a comparable point in their lives.

It's a stark truth in a nation where approximately 1.5 individuals take out loans annually, finishing their studies with an average financial obligation of £53,000 (roughly $71,000). The diminishing benefits make the expense of higher education seem more and more misaligned with the outcomes.

Beyond compensation—even securing a job has become harder. A report by The Institute of Student Employers revealed that 1.2 million applications were lodged for a mere 17,000 graduate positions in the U.K. During 2023–2024. Companies are now getting an unprecedented 140 applications per graduate opening, on average.

Ultimately, discontent among graduates could be exaggerated.

Many graduates find their post-university experience disheartening, particularly after years of being assured that earning a college diploma guaranteed a lucrative profession.

Jaymie Lazenby, a recent graduate, confessed that numerous graduates, himself included, entered the employment arena with the expectation of securing a genuine position swiftly, a notion that proved to be considerably inaccurate.

“After you leave, it’s not as easy to just walk into a job as you thought it might have been at the start,” Lazenby told ITVNews. He applied to as many as 500 roles before finally conceding a position in a business apprenticeship—something he could have landed without his degree. While he admitted he didn’t believe his time in university was a complete waste of time, it hasn’t helped with his career so far.

Lazenby's situation reflects the disappointment experienced by a significant number of young individuals. However, despite these difficulties, the general public's view of graduate discontent is considerably more bleak than the actual situation, as indicated by research of King’s College London and the Higher Education Policy Institute.

Contrary to popular belief that approximately half of U.K. Adults consider a university degree not worthwhile in terms of time or expense, merely 31% hold this view. The disparity in perception is even more pronounced regarding regret; the general public surmises that 40% of degree holders would opt out of attending university a second time if presented with the option, yet the actual statistic stands at a mere 8%.

That contentment probably arises from the wider advantages of higher education, such as building connections and enhancing soft skills—encompassing analytical reasoning, articulation, and issue resolution—even though the financial return has diminished.

Nonetheless, leaders in the U.K. Concede that changes are required. Prime Minister Keir Starmer has indicated an intention to promote an educational framework emphasizing skills, with the objective of having two-thirds of younger individuals obtain either a university degree or a professional certification. This initiative would build upon Tony Blair’s 1999 aspiration of enrolling 50% of young people in higher education, a benchmark that was ultimately met in 2019, as reported by BBC. 

Students completing their education are facing difficulties worldwide, yet there's still hope.

The challenges confronting Gen Z extend beyond the British Isles. In the U.S., individuals graduating are contending with a contracting employment landscape, persistent inflation, and intense rivalry for initial positions—all while pondering if conventional academic qualifications still offer substantial value. 

However, not everything is discouraging. The way ahead, according to specialists, might necessitate redefining the appearance of achievement. Lewis Maleh, the chief executive of Bentley Lewis, a firm focused on staffing and recruitment, contends that proficiency and practical background—beyond mere qualifications—will shape the advancement of those at the start of their careers.

“Get practical experience through internships, apprenticeships, or even taking a role that’s slightly below your aspirations to get your foot in the door,” Maleh told Coins2Day. “Your early career is about learning and building relationships, not just titles and salaries.”

“Most importantly, see your 20s as a decade of exploration,” he added. “Too many graduates think they need to have it all figured out immediately, but your first job won’t be your last. Focus on finding good managers and learning environments.”